Low Interest Green Mortgage

November 03, 2022

Did you know that after installing solar panels you may qualify for the low interest green mortgage if you have achieved a BER rating of between a B3 and A1?

One of our customers was kind enough to share with us their mortgage savings since installing solar panels and being approved for the low interest green mortgage.

Currently, they save a total of €87.08 a month which works out at a saving of over €1K a year for the next 5 years and on top of their savings from Solar as well.

Be sure to check out with your mortgage provider to see if you qualify.

Green mortgages explained.

A green mortgage could save you money if you have an energy-efficient home. Here’s all you need to know about green mortgages in Ireland and how to pick the best one.

What is a green mortgage?

It’s a type of mortgage which offers lower interest rates or a discount for:

house buyers who purchase an energy-efficient home

homeowners who live in energy-efficient homes

Energy-efficient homes use less energy to heat and run so are more environmentally friendly and will save money on energy bills in the long run.

The mortgage loan isn’t ‘green’ itself, and the mortgage lenders are not necessarily more ethical. The positive environmental impact comes from your home using less energy and a reduced carbon footprint.

How does a green mortgage work?

Green mortgages in Ireland work the same way as a standard mortgage; you’ll borrow a large sum of money to buy a property and make monthly payments to repay the loan with interest.

The main difference with a green mortgage is that you get a discount off the lender’s standard rate so your mortgage is cheaper. The savings you make are mostly due to the discounted interest rate, but mortgage cashback may also be on offer for release at drawdown.

To qualify for the cheaper mortgage rate in Ireland the house you are buying, building or adapting will need to have a Building Energy Rating (BER) of B3 or higher.

What is a Building Energy Rating (BER)?

A Building Energy Rating (BER) shows your home’s energy performance and grades your home’s energy efficiency on a scale of A-G.

A-rated homes are the most energy-efficient and G-rated homes are the least.

The higher your BER, the less energy you use; for instance, an A-rated house conserves heat better so you’ll use less fuel to keep it warm.

A BER certificate is now required for most homes for sale or rent in Ireland and BER details must be included in advertisements when a home is on the market. Since 2007 all new build homes are required to have a BER certificate.

The bottom line is an A-rated home will benefit from lower energy bills and leave a smaller carbon footprint, whereas a G-rated home will attract high energy bills and is less environmentally friendly.

Are you eligible for a green mortgage?

The eligibility requirements for a green mortgage are the same as for a standard mortgage application, such as being an Irish resident over 18 years, but to qualify for a green mortgage there are three pathways.

You may be entitled to a green mortgage if you are:

  • Buying a home with a BER between B3 and A1
  • Adapting a home so it has a BER between B3 and A1
  • Building a house with a BER between B3 to A1

Green mortgages are available for:

  • First-time buyers
  • Movers
  • Switchers
  • Self-builders

FOR FULL ARTICLE go to: Switcher.ie




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